2016/2017 Killara Report Glenn Curran
A word from John McGrath
Having experienced significant growth in the residential market over the past 5 years I believe we will see a year of consolidation with prices stabilising around these current levels. Whilst there has been some speculation in the media about the Sydney market being overvalued I believe strong fundamentals remain which will continue to make well located property a sought after commodity. These include a strong economy, rapid population growth, overseas investment, shortage of supply & low interest rates. With this in mind there is always the possibility of a short term correction when the market cycle comes to an end but the dramatic drop that some have suggested will not be happening. I believe that as apartments become a larger part of the overall mix of properties & detached dwellings & generous land allotments become a more scarce commodity there will be an outperformance over the next few years of quality housing located in prime residential locations. As Mark Twain once said "Buy land, they're not making any more of it!".
Glenn Curran and his team at McGrath
Whilst Killara continued to perform strongly right through the FY17 period ending June 30th, the final quarter witnessed a 1.53% drop in medium house price. The past year has capped off 5 years of strong capital growth in both house and unit prices with the medium house price for Killara now sitting at $2,611,500. To put that in context the medium house price at the end of 2012 was $1,550,000! In terms of volume there was a total of 92 home sales during the period representing about 3.8% of the 2405 homes in Killara. This in itself is below historic averages by about 25% and down 18% on FY16 in which 111 homes traded. These low volumes along with the historically low borrowing rates and strong overseas demand have contributed to sustained growth over the period. The top sale of a residential R2 zoned property was 9A Arnold Street at $8,800,000. This was still $3,000,000 below the suburb record set by myself at the landmark property “Ballernoo” 26 Wattle St in 2016. Buyer activity was strong throughout the year with record attendance levels at some of our McGrath open homes, the historic property “Poitiers” at 66 Springdale Rd had more than 250 groups in just 5 open homes, before selling at Auction for $5,450,000. In addition to our on-market results there have been off market purchases negotiated with a stand out sale at 18 Norfolk Street in September for $5,300,000 on 1116m2, the property trading to an overseas buyer after receiving approval from the Foreign Investment Review Board (FIRB). Where to for our wonderful suburb in the next 12 months? In my opinion, we are at the crest of the current boom. Since June 30 we have seen more listings come on-stream correlating with a decrease in the Auction clearance rates not only in Killara but across Sydney. July 1st also saw the introduction of an increases in duties levied on foreign purchasers. A foreign purchaser buying under a Special Investment Visa 188 class who does not qualify for being in Australia more than the requisite 200 days can expect to pay almost 8% in duties and taxes aside from the normal Stamp Duty obligations for any purchaser. On a $5 million dollar purchase that equates to $690,000 inc Stamp Duty. Aside from an increase in foreign duties the Banks during the period have restricted lending to foreign purchasers and increased domestic investor borrowing rates. The combined confluence of all of these factors is having a cooling effect on the market. I look forward to seeing you during the coming year and if you would like a quarterly update via email please drop me a line and I would be pleased to provide this information and happy to discuss any real estate needs you may have in the local area.
Glenn Curran 0418437896 glenncurran@mcgrath.com.au
*Data researched from Core Logic – RP Data and Ashton Rowe
66 Springdale Road, Killara
Our eldest son first contacted Glenn some eighteen months ago with a view to consider a marketing strategy for our home of the last forty years. After some off market offers, due to John's ill health, we did not commit to any sale campaign. Glenn had the foresight at this time, early Spring, to have his photographer take pictures of the front of the house and garden, in full bloom. Early this year we were again in touch with Glenn to discuss our sale. He was very helpful and recommended an auction even though the house is Heritage listed. We agreed to this and Glenn was able to use the Spring photos in our selling brochure. Glenn spearheaded our campaign, attending each house showing and reporting. He and his team were very professional and we were very happy with the final result and would strongly recommend Glenn and his team to any prospective vendor. John & Patricia Mortlock
Killara’s highest sales Houses: Highest sales prices* No.
Address
Bed
Bath
Car
Sale price
1
9 Lorne Avenue
5
3
2
$9.75m
2
9A Arnold Street
5
4
3
$8.80m
3
17 Arnold Street
7
5
2
$6.46m
4
10 Nyora Street
5
4
4
$6.36m
5
25 Powell Street
6
6
2
$6.0m
6
37A Arnold Street
-
-
-
$5.60m
7
4A Lagonda Avenue
5
3
4
$5.525m
8
1 Werona Avenue
5
3
2
$5.50m
9
66 Springdale Road
4
3
2
$5.50m
10
18 Norfolk Street
5
3
2
$5.30m
Source: Ashton Rowe Investments, RP Data and Home Price Guide. Excludes undisclosed sales, Year to July 2017.
Units: Highest sales prices* No.
Address
Bed
Bath
Car
Sale price
1
16/17 Powell Street
3
2
2
$1.93m
2
15/10 Marian Street
3
2
1
$1.91m
3
11/32 Marian Street
3
3
2
$1.90m
4
29/42-48 Culworth Avenue
4
2
2
$1.85m
5
35/29 Lorne Avenue
3
2
2
$1.78m
6
10/5 Wallaroo Close
3
2
2
$1.745m
7
10/2A Killara Avenue
3
2
2
$1.725m
8
24/9-23 Bruce Avenue
3
3
2
$1.711m
9
308/1-7 Bruce Avenue
3
2
2
$1.60m
Source: Ashton Rowe Investments, RP Data and Home Price Guide. Excludes undisclosed sales, Year to July 2017.
Disclaimer: The information in this report is provided by Ashton Rowe Investments, RP Data and Home Price Guide. Excludes undisclosed sales, Year to July 2017. Parties should rely on their own enquiries and McGrath will not be liable for error or admissions herein. Sales shown in this report are not exclusively McGrath sales*
18 Norfolk Street, Killara
My husband and I have been in the property market for over 25 years as a build and design team. During this time we made it our business to become familiar with many agents. Every now and again you come across an agent that displays integrity, honestly and passion. Glenn Curran is that agent. With no anticipation of selling, nor taking our home to market, Mr. Curran not only bought a qualified buyer to the table, but to succeeded in getting a record sale for that area. His honourable approach and upfront principles holds him in a very high regard with our family. I have no hesitation in recommending Glenn to those seeking an exceptional sale price and unwavering professionalism. Tiffany Rahme
Killara market review TOTAL MARKET
Properties in suburb Annual Sales* Turnover
HOUSES
UNITS
2,405
1,991
92
90
3.8%
4.5%
Source: Australia Bureau of Statistics, Census 2011 and local council dwelling approvals * 5% margin for error in this figure due to market information being with held.
Total house sales ($m) $9.0m
QUARTILE
$8.0m
SOLD PRICES
UPPER
$4.032m
$6.0m
MEDIAN
$2.694m
$5.0m
AVERAGE
$3.302m
$7.0m
$4.0m SRN = Statistically Not Reliable
$3.0m $2.0m $1.0m $0m
Aug 16
Jan 17
Jul 17
Source: Ashton Rowe Investments, RP Data and Price Finder
Total unit sales ($m) $3.0m
QUARTILE
SOLD PRICES
$2.4m
UPPER
$1,262,800
$1.8m
MEDIAN
$981,000
$1.2m
AVERAGE
$1,066,458
LOWER
$0.6m
$810,000
SRN = Statistically Not Reliable
$0m Aug 16
Jan 17
Jul 17
Source: Ashton Rowe Investments, RP Data and Price Finder
Stay in touch on glenncurran.com.au
Want to stay up to date with the Killara Property Market? I will be providing a quarterly report via email outlining relevant statistics for that quarter. To register for this report, go to my website glenncurran.com.au put in your details and 4 times a year I will provide a comprehensive overview of the Killara Market. The website contains current and previous listing, selling and buying information plus my latest articles. Here is an extract of my article on using video for selling property. There’s no doubt that video is an important tool for increasing client engagement and conversion. If you needed any convincing just look at some of the statistics available. For example, according to Mist Media, the average internet user spends 88% more time on a website with video. Web developers Unbouncy claim that using video on a landing pages can increase conversion by 80%. And when marketers include video in email, according to Forrester, click through rates increase 200% – 300%. So, it’s no surprise the real estate industry is increasingly adopting the use of video to showcase prestige properties. Glenn was an early adopter of this trend and I believe the use of high definition (HD) video is crucial to presenting luxury properties in the best possible light. Our interstate and international clients rely heavily on our HD productions to finalise their selections before committing to travel for an inspection. When I first began producing video I noticed a significant improvement in client engagement on our website. The short-form videos we produce are designed for our social media generation. Video is the fastest way to share information; it inspires, provokes and excites. We create authentic property videos that capture the human element of a home, a suburb and the lifestyle experience. Video can hugely impact your marketing campaign by driving more traffic to your property. With video on your property’s webpage, visitors will stay twice as long as those without video. And they’re also more likely to return and watch it a further two or three times. 73% of home owners say they are more likely to list their home with an agent who offers this service for their property. And that translates directly to a faster, more efficient sales process for our clients.
Capital growth SUBURB GROWTH
HOUSES
UNITS
10 Year Average *
7.1%
7.1%
3 Year Average *
13.4%
8%
12 Months **
13.8%
6.7%
Source: Ashton Rowe Investments and Residex - Suburb Report June 2017 * Annualised capital growth ** Capital growth over the last 12 months
Houses - capital growth 60% 50% 40% 30% 20% 10% 0% Jun 15
Jun 16
Jun 17
Killara houses
Sydney houses
Killara units
Sydney units
Total
Units - capital growth 60% 50% 40% 30% 20% 10% 0% Jun 15
Jun 16
Jun 17
Total
Source: Ashton Rowe Investments and Residex - Suburb Report June 2017 * Rolling 12 month periods to quarter end
The Killara residential market has outperformed the Sydney metropolitan market by an average of 0.8% each year over the last three years for houses and underperformed by 1.8% per year for units.
Capital Growth Calculation: In short, the calculation methodology takes 'sale pairs' for every property that has at least two sales recorded. These individual property growth rates are then combined into a complete growth rate for the chosen suburb. The development of this methodology won an international actuarial award in 1992. More recently, a paper issued by the Reserve Bank of Australia (Australian House Prices: A Comparison of Hedonic and Repeat- sales Measures, James Hansen, 2006) confirmed his methodology to be superior to those based on simple movements in median price. For more visit www.ashtonrowe.com.au
Important Information UPDATED INFORMATION
Date compiled 15 August 2017
Information may be subject to change from time to time and updated information can be obtained at any time by contacting Ashton Row at info@ashtonrowe.com.au
CONTENT INTEGRITY
DISCLAIMER Whilst this information has been carefully complied, no warranty or promise as to its correctness is made or intended. The information outlined within this document as represents subjective interpretation by Ashton Rowe (ACN 1 44 714 509) and should not be solely relied upon for investment decisions. Interested parties should undertake independent inquiries and investigations to satisfy themselves that any details herein are true and correct. No guarantee of forecasts are being made by Ashton Rowe about potential capital gains or losses. Past information about capital gains does not imply that such gains or growth will be made in the future. The material in this publication is copyright. This document cannot be reproduced without the express permission of Ashton Rowe. The information contained in this brochure is of a general nature and has been provided at least in part to McGrath Sales Pty Ltd (“McGrath�) by Ashton Rowe. While McGrath has no reason to believe that the information is incorrect, McGrath and its related bodies corporate, directors, agents, contractors and employees make no representation about the accuracy, reliability, completeness or timeliness of the information contained in the brochure and does no more than pass it on to you. McGrath has no belief one way or to the other as to the accuracy of the information. You should rely on your own enquiries and seek appropriate professional advice with respect to any information contained in this brochure.
While Ashton Rowe believes it is unlikely that the electronic version of the report will be tampered with or altered in any way, Ashton Rowe cannot give any absolute assurance that this will not occur. Any investor in doubt concerning the validity or integrity of an electronic copy of the report should immediately request a paper copy of the document directly from Ashton Rowe. THIS IS NOT FINANCIAL ADVICE. YOU SHOULD SEEK YOUR OWN FINANCIAL ADVICE. This report does not take into account the investment objectives, financial situation and particular needs of individuals. The product and pricing information contained within this document is based on price lists and their party information obtained throughout the course of our investments. This information has been prepared independently and at our own discretion. It is particularly important that you consider the rick factors that could affect the financial performance of the property. You should carefully consider these factors in light of your particular needs, objectives and financial circumstances (including financial and taxation issues) and seek professional advice from your own professional advisors.
McGrath Property Management
9 Grosvenor Road Leased
12 Ignatius Road Leased
MAXIMISING YOUR INVESTMENT RETURN You didn’t buy an investment property to become a
Property Manager Are you achieving the best possible return on your investment? Four factors critical to managing a property well: • Highly experienced and skilled fulltime Property Managers who are motivated to effectively manage your investment. • Structured procedures and systems in please to ensure management of routine inspection, rent collection, rent reviews and lease renewals. • 6- Star Service including excellent communication throughout, keeping informed at every stage giving you confidence your investment is being looked after. • A brand that values quality, excellence and is highly focused on achieving the best outcomes for you. Emma Gardiner Known for always striving to provide standout levels of customer service, Emma Gardiner is an asset to McGrath’s Lindfield office. Several years of industry experience combined with unique business insights gained from owning her own business have helped shape her acute understanding of all aspects of the property leasing process. Emma’s excellent communication and organisational skills are the foundation of her ability to build strong relationships with both landlords and tenants. Emma Gardiner Business Development Manager 0410 030 035
Glenn Curran McGrath Lindfield 0418 437 896 glenncurran@mcgrath.com.au
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